Oxial – How Coronavirus Has Impacted Risk Management
From employee management through leadership and communication, increased cyber threats, logistics and operations to post-pandemic planning and risk mitigation, the threat landscape has experienced enormous change. These noticeable shifts force us to consider rethinking and retooling how we address risk.
How has the risk landscape changed? For one, the likelihood of ineffective digital and remote employee management may result in higher turnover as opportunities become available. The cultural change for management has been enormous; finding a way to lead in the digitized world while ensuring that staff feel valued, listened to, and “well-remunerated” is required. Beyond the cultural changes, cyberthreats have considerably increased in response to the pandemic, requiring companies that had not already done so to include or improve their risk management program in the cybersecurity space. Risk management practices must now consider the impact of supply chain more as a key part of their continuity programs. Finally, as we think of coming out of the lockdown scenario and new risks emerge, we must consider not only how to continue to work in a changed manner, anticipating employee expectations for flexible work environments having proven they can be productive remotely, but also what to do with the brick-and-mortar office building presence in the longer term.
Source: Oxial
Our Take
Every once in a long while, an event creates a paradigm shift. In the space of risk management, companies must now address new aspects of traditional business and financial risks resulting from the pandemic and the uncertainty it will bring forth for some time yet. Additionally, risk management must respond to the new risks that result from a hyper-digitized environment where customer and employee expectations have changed while still working to improve management strategies and facilitating risk-based decisions about the longer-term strategies for the business model.
Corporate risk management programs must focus on establishing new models that align with the full scope of the new risk paradigm and develop product-program models that address the entire risk program through effective strategy and tool alignment.